Home > 2012 > Credit Score > Will a New Credit Card Change My Score?

Will a New Credit Card Change My Score?

Advertiser Disclosure Comments 1 Comment

Credit does not have to be complicated. At Credit.com, we sometimes receive questions that can be vexing to an average consumer, but to a true credit expert it is actually quite simple. Reader Mike Smothers asked us just such a question recently:

“When a credit card company issues me a new credit card,” he wrote in response to a recent story, “is this reported to the credit bureaus?”

And here’s the response from Barry Paperno, Credit.com’s credit scoring expert: “Yes.”

Basically, every time you do something new with credit — get a new credit card or loan, pay off a student loan, apply for a mortgage — that event is recorded as part of your credit history, and figured into your overall credit score.

Smothers has another straightforward question: “Are the credit bureaus required by law to share this information with the other credit bureaus?”

To this, Paperno says, “No.”

The reason why the credit bureaus typically don’t share data about consumers’ new credit cards, and why they’re not required to, is that it’s usually done for them by the credit card issuers.

“It’s a voluntary system,” Paperno says. “So most likely his issuer will report separately to each of the three major bureaus.”

So Smothers doesn’t have to worry about getting credit for his new credit card, and he doesn’t have to worry about whether all the different credit bureaus will share the information. Creditors really like to know when people get new credit cards or loans, and most of them share this information freely and quickly with the three major credit bureaus — Equifax, Experian and TransUnion.

Image: seishin17, via Flickr

Comments on articles and responses to those comments are not provided or commissioned by a bank advertiser. Responses have not been reviewed, approved or otherwise endorsed by a bank advertiser. It is not a bank advertiser's responsibility to ensure all posts and/or questions are answered.

Please note that our comments are moderated, so it may take a little time before you see them on the page. Thanks for your patience.

  • Dinah

    Can a creditor obtain my new address if I have not disclosed it?

Certain credit cards and other financial products mentioned in this and other articles on Credit.com News & Advice may also be offered through Credit.com product pages, and Credit.com will be compensated if our users apply for and ultimately sign up for any of these cards or products. However, this relationship does not result in any preferential editorial treatment.